Industry of Insight for Indian

Textiles
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ional-business-projects/

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EXECUTIVE SUMMARY

The phasing out of world trade quotas from January, 2005, thrust Indian
textile industry into a new era where it not only needs to fend for itself in the
global markets, but also faces competition from global players in its own
backyard. Undoubtedly the removal of quota restrictions presents India with
an opportunity to increase its share of global market.
But India needs to reform its laws, modernize machinery and scale up
capacities to global level to exploit this opportunity. Textile is among the
leading sectors in the Indian economy in terms of production, exports,
employment and contribution to the exchequer.
According to Confederation of Indian Industry (CII), textile industry has high
growth potential given inherent strengths such as abundant raw materials,
low labor cost and a thriving domestic market. Textile industry is also
important from a foreign exchange and employment perspective.

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HIGHLIGHTS

Indian textile industry, according to Ministry of Textiles, constitutes 20 per

cent of industrial production, 9 per cent of excise collections and 18 per cent
of employment in industrial sector.
India with its share of 14 per cent in the US$31 billion global cotton textiles
trade is second only to China in the global market.
Indian textiles industry accounted for share of 37 per cent of countrys gross
export earnings and four per cent of gross domestic product in 2003-04. It
has been growing at a rate of 5-7 per cent and expected to grow at the rate
of 15-16 per cent in 200506.
India accounts for 22 per cent of the world installed capacity of spindles. It is
one of the largest exporters of yarns in the international market. The
industry accounts for 25 per cent share of world trade in cotton yarn. Indian
industry has the largest cotton acreage of nine million hectares.

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Download Industry Insight

Indian Textiles
http://www.managementparadise.co
m/ssikander08/documents/505/textile
-industry/

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